Main Agreement handbook for the metal industry - Conditions of employment
change the timing of the retrenchment; and mitigate the adverse effects of the retrenchment; The method for selecting the employees to be retrenched; and The severance pay for retrenched employees. The employer must allow the consulting parties an opportunity to make representations about any of the above matters, and any other issues relevant to the proposed retrenchment. The employer must consider and respond to any representations made and if the employer does not agree with them, he must state the reasons for disagreeing. If the consulting party’s representations are made in writing, then the employer must respond in writing. In any dispute in which an arbitrator is required to decide whether or not any information sought by the consulting parties is relevant, the onus is on the employer to prove that the information which he has refused to disclose is not relevant for the purposes for which it is sought.
3.4 Selection criteria The employer must select the employees to be dismissed according to selection criteria that have been agreed by the consulting parties. If no criteria have been agreed, then they must select according to criteria that are fair and objective. A party may not refer a dispute over the retrenchment to the bargaining council unless a period of 30 days has elapsed from the date on which the employer’s notice of invitation to consult was given. After a dispute has been referred to the bargaining council, and after the relevant period referred to in section 64(1)(a) of the Act has elapsed: The employer may give notice of termination to those employees selected for retrenchment on the following basis: Employment for six months or less with the same employer: one week’s notice. Employment for more than six months but not more than one year with the same employer: two weeks’ notice. Employment for one year or more with the same employer: four weeks’ notice. A registered trade union or the employees who have received notice of termination in accordance with the provisions of section 189A of the Act, may either: give notice of a strike; or refer a dispute concerning whether there is a fair reason for the dismissal to the Labour Court in terms of the applicable provisions of the Act.
3.5 Severance pay The formula in clause 35 of this agreement must be used to determine the amount of severance pay to be paid to a retrenched employee.
3.6 Notification to the bargaining council
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Effective from 1 July 2021
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© SEIFSA 2021
3.7 Re-employment of retrenched employees If an employer who has previously retrenched employees engages new employees, that employer must, as far as is practicable, give preference to the re-engagement of those persons who were retrenched from the establishment and who are qualified and available to undertake the categories of work required by the employer.
4 Lay-offs Definition ‘Lay-off’ means the temporary suspension, without pay, of employment for a minimum of five clear working days due to a reduction in the volume of work in an establishment or section of an establishment or due to other economic reasons. A lay-off may not continue beyond a maximum period of eight weeks unless otherwise agreed between the employer and the trade union representing the affected employees.
Notification An employer wishing to implement the provisions of this section must notify the Regional Council and any trade union(s) representing the affected employees by registered mail to reach those organisations 14 days prior to the date of the intended lay-off. Notification by telephone, fax or telegram can be effected to reach these organisations 14 days prior to the lay-off and must be confirmed in writing. Notification of lay-off, as set out above, shall include: full details of the affected employees; the reason(s) for the lay-off; and the estimated period of the layoff.
Consultation Following notification, the employer must consult jointly with all trade unions representing the affected employees and employee representatives elected in terms of an agreed procedure, on ways and means of avoiding or limiting lay-offs and on criteria for determining which employees are to be laid off.
Notification to employee An employer must give affected employees a minimum of five clear working days’ notice of intention to lay-off. The notice must include the specific date on which affected employees are to resume work.
General Employees on lay-off may elect in writing to have their services terminated, in which event the termination provisions of this agreement must apply.
Once the affected employees have been given notice of the termination of their employment, the employer must inform the bargaining council’s regional office, in writing, of the number and occupational categories of the employees who have been retrenched.
Employees on lay-off may engage in any employment for gain during the lay-off period. Should an employee on lay-off not return to employment
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